Ministry of the Economy

The change in the conditions for competition in the 1990s: institutional framework and the effects of privatisation, commissioned by the Ministry of the Economy

2002 (Éva Voszka)

The concept of a market economy embraces both competition and private ownership. During the transition period, therefore, creating the conditions for competition is just as important theoretically and practically as expanding the sphere of private ownership. This study examines the state dilemmas, the establishment of competition regulation and the impact of this on privatisation, and classifies the consequences of the relationship between the two processes for corporate organisation. The empirical analysis demonstrates that during this period of transition so burdened by uncertainties, owing to the clash of arguments, interests and institutes, the decisions concerning economic structure and regulation were driven by short-term political considerations and external forces rather than by a clear selection of values and theoretical, professional debates. This general phenomenon is reflected in the fact that management of the structural conditions for competition has become fragmented in spite of several attempts, and several elements have remained ineffective. The increase in the number of market players has been much more an unintended consequence or a side effect.